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by Wyoming23
1319 days ago
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Of course the real problem is that dividends shouldn't be taxed in the first place. The entire economy operates on a rule of no double taxation, except for dividends. It's income that's already taxed at the corporate level, then taxed a second time when that post-tax income is transferred to the shareholders. |
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Citation needed here. Nowhere is such a rule explicitly written, nor is it clear why it must be the case. Further, what you’re saying is incorrect, people often claim estate taxes to be “double taxation” as well.
It’s not hard to see how many forms of taxes fall under this rubric. If corporate income taxes + taxes on dividends are “double taxation”, then couldn’t the same not be said about those same corporate income taxes and sales taxes? It’s honestly hard to think of any taxation regime that doesn’t include taxation at multiple points in a transaction chain.
Taxes exist to severe a function, and that is to extract money from the economy in a just and efficient manner. It would seem that you are implying that “double taxation” in this instance somehow violates the former, though I don’t think most would agree with you.